Maryland Laws and Rules Pertinent to Property and Casualty Insurance

If an insurer Is going to cancel or non-renew lead hazard coverage they must provide how many days advance notice? A) 30 days B) 45 days C) 10 days D) 15 days

A) 30 days

Most employers in Maryland are required to carry Worker's Compensation insurance if they have how many employees? A) One or more B) Three or more C) Five or more D) Seven or more

A) One or more

An insurer May legally terminate a property policy midterm for all of the following reasons except : A) too many claims B) Being convicted of arson C) Change in the property that materially increases the risk D) Committing fraud in the process of obtaining the policy

A) too many claims

The minimum limit ( personal injury protection) written is: A) $2500 B) $1000 C) $1500 D) $5000

A. $2500

Advertising regulations exist to A) Assure full and truthful disclosures to the public B) Generate revenues for the state C) Ensure that all insurers get equal exposure D) Assure that spokespersons are properly vetted

A. Assure full and truthful disclosures to the public

James suffered an electrical fire which damaged his house. He filed a claim with his insurance company. But learned his insurer filed bankruptcy six months ago. Just needs help. What organization can help get his claim covered? A) The property and casualty insurance guaranty corporation B) The consumer protection agency C) No one he is on his own to pay his claim D) The FDIC

A. The property and casualty insurance guaranty corporation

A producer has committed an insurance code violates US code 1033 ( Interstate commerce). Who would be responsible for the prosecution of this crime? A) Us attorney general B) Commissioner C) Lieutenant governor D) State senate

A. Us attorney general

Upon receiving a producers complaint the commissioner may immediately A) issue a cease and desist order B) Revoke the license C) Impose a fine D) Issue a warrant for arrest

A. issue a cease and desist order

A producer who is licensed in Maryland but resident in another state is called a A) nonresident producer B) Foreign producer C) Reciprocal producer D) Limited lines producer

A. nonresident producer

An insurer may cancel or non-renew lead hazard coverage for any the following reasons except: A) not paying the premium B) The Property meets all requirements but the insurer just wants his business off the books C) Refusing the insurer access to inspect the property D) The property fails to maintain compliance with risk reduction standards

B) The Property meets all requirements but the insurer just wants his business off the books

A producers license must be renewed every. Year(s) A)1 B) 2 C)3 D)4

B. 2

Ed is an insurance producer. His client Bob wants an equipment breakdown policy for his RV. It is only available from a surplus lines ensure. What license/S must Ed have to write an application for his client? A) property/casualty license B) A property/casualty license and surplus lines license C) A property/casualty license and a motor club license D) A surplus lines license

B. A property/casualty license and surplus lines license

When collision coverage is added to a personal automobile policy the insurer is required to also cover: A) The insureds Company car titled in the name of the business B) A vehicle rented for 30 days or less C) The insureds ATV used Only off-road D) The insured's motorcycle

B. A vehicle rented for 30 days or less

Any information gathered by the commissioner when enforcing insurance rules is considered: A) public information B) Confidential and privileged C) Public but only if obtained by subpoena D) Privileged until an investigation is completed then it becomes public

B. Confidential and privileged

The finance changes a premium finance company charges an insured are primarily earned: A) equally through the contract period B) In the early months of the contract C) In the first three months of the contract D) In the later months of the contract

B. In the early months of the contract

An ___sells, solicits or negotiates insurance contracts for compensation A) Insurance mediator B) Insurance producer C) Insurance liaison D) Insurance advisor

B. Insurance producer

All of these may be unfair claims practice except: A) refusing to pay claims without a reasonable investigation B) Refusing to pay persons bringing false or fraudulent claims C) Failing to properly provide a reasonable explanation of any claim denial D) Offering low amounts of force Insureds to institute litigation

B. Refusing to pay persons bringing false or fraudulent claims

ABC Cherity has just terminated the appointment of a surety broker. Besides notifying the commissioner who else must be notified. A) the Secretary of State B) The chief clerk of the District Court of Maryland C) The state legislature D) No one else. They onlyNeed to notify the commissioner

B. The chief clerk of the District Court of Maryland

A Maryland insurance producer soliciting insurance policy. In the event of a controversy between the insured and the company the producer is considered to represent the A) insured B) Beneficiary C) Company D) Policyholder

C .Company

Maryland requires a licensee completes __Hours of continuing education on the subject of ethics every reporting period A) 1 B) 2 C) 3 D) 4

C) 3

Twisting is an illegal act which involves A) intimidation B) Rebating C) Misrepresentation D) Defamation

C) Misrepresentation

Jason is an insurance producer. In attracting new clients he is for bidden to offer rebates or kickbacks to clients to buy. He can however offer items of merchandise such as calendars pens etc. as long as they cost no more than: a)five dollars B)$15 C) $25 D) $30

C. $25

Surplus lines premiums are subject to premium receipts tax on all gross premiums of: A) .01 B) .05 C) 3% D) .075

C. 3%

A Licensee Must notify the commissioner of an address change within ____days of the change A) 10 B) 20 C) 30 D) 40

C. 30

A producer may begin to solicit insurance only when A) registered for the state insurance examination B) Licensed by the state C) Appointed by an insurer D) None of these

C. Appointed by an insurer

An insurer may not cancel or non-renew a policy for any of the following reasons except A) race B) Blindness C) Claims D) Sex

C. Claims

. Which type of insurance product Only requires a limited Lines procedures license? A) auto insurance B) Life insurance C) Credit life D) Commercial umbrella insurance

C. Credit life

The commissioner is responsible for auditing all domestic insurers. The audit must be performed at least every A) three years B) Seven years C) Five years D) Six years

C. Five years

A producer secretary who solicits prospects on the telephone A) Is an Example of The legal act called twisting B) Must be bonded through the state C) Must be licensed as a producer D) Is not required to be licensed as a producer

C. Must be licensed as a producer

A public adjuster negotiate and settles his claims for the best interest of: A) The insurer B) The repair contractors C) The insured D) The public adjuster

C. The insured

A producers renewal date for his/her resident insurance license is on or before: A) The first day of the licensees birth month B) January 1 every two years C) The last day of the licensees birth month D) December 31st every year

C. The last day of the licensees birth month

An insurer may pay commission in which of the following scenarios A) to an applicant as incentive to purchase an insurance policy B) To an unlicensed person who has sold solicited or negotiated a policy of insurance on behalf of the insurer C) To a licensed producer who is appointed to the insurer D) To a licensed non-appointed producer who has sold solicited or negotiated a policy of insurance on behalf of the insurer

C. To a licensed producer who is appointed to the insurer

An insurance producer who wants to place business with the Maryland automobile insurance fund must post bond of A) $5000 B) $25,000 C) $10,000 D) $50,000

C.$10,000

A temporary producer license issued in Maryland Is valid up to A) six months B) Nine months C) 12 months D) 15 months

D) 15 months

Before Justin a licensed producer can represent M&M Insurance what must M & M do? A) get permission from the commissioner to appoint Justin B) Have Justin pay a producers fee C) Nothing D) Appoint Justin as a producer for the company

D) Appoint Justin as a producer for the company

A company that lends money to an applicant for insurance so that they can pay their insurance premium and payments instead of lump sum is called: A) mortgage loan company B) Loan shark C) Maryland insurance guaranty Corporation D) Premium finance company

D) Premium finance company

An example of misrepresentation is: A) making a public statement that contains false or malicious information about an insurance company B) Charging a different rate for someone in the same actuarial class C) Offering a premium rebate or a special advantage of any kind to a consumer as a inducement to purchase a contract of insurance D) Providing incorrect, misleading, incomplete, or materially untrue information in the license application

D) Providing incorrect, misleading, incomplete, or materially untrue information in the license application

The promise of a discount in premium as an inducement to purchase insurance is known as A) misappropriation B) Misrepresentation C) Intimidation D) Rebating

D) Rebating

The maximum dollar amount the property and casualty insurance guarantee your corporation will pay is A) $150,000 B) $500,000 C) $250,000 D) $300,000

D. $300,000

Larry's appliance store received a notice of nonrenewal of their commercial property policy. To request additional information about their non-renewal how many days does The store have to make the request and how quickly must there insurer respond? A) 30 days to request: 30 days to respond B) 15 days to request: 30 days to respond C) 45 days to request: 15 days to respond D) 30 days to request: 15 days to respond

D. 30 days to request: 15 days to respond

A(N) negotiates an insurance contract on behalf of an insurer A) advisor B) Underwriter C) Consultant D) Producer

D. Producer

Which of the following is not required in an order from the commissioner? A) The purpose of the order B) Grounds that the orders Is based on C) The effective date of the order D) The governor signature

D. The governor signature